Finance refers to the financing of monetary funds, which can be divided into direct finance and indirect finance. The difference between these two financing methods lies in whether financial institutions participate. If not, it is direct financing; if not, it is indirect financing.
Financial products refer to carriers of various economic values, such as cash, stocks and futures. For example, we say that Zhang San is rich, but all his 3 million shares have been bought, and now the market value of these shares is less than 1 10,000. As can be seen from this example, value is changeable and exists in different carriers. Except for a few cases such as gold bars and bricks, this carrier often exists in the form of non-physical securities, so it is also called financial assets. In addition, because financial products can be used for profit, they are also called financial instruments. The above-mentioned Zhang San used money to buy stocks in order to make money with stocks as a financial management tool.
Financial institutions refer to financial intermediaries engaged in financial services and are part of the financial system. Financial services include banking, securities, insurance, trust, funds and other industries. Correspondingly, financial intermediaries also include banks, securities companies, insurance companies, trust and investment companies and fund management companies.
Financial crisis refers to the crisis related to finance, that is, the crisis of financial assets, financial markets or financial institutions, such as the stock market crash and the collapse of financial institutions. The above-mentioned individual financial crises have occurred from time to time at home and abroad. However, according to different markets and countries, if individual crises are not handled in time and well, they will easily turn into systematic financial crises. The global financial crisis triggered by the United States is a good example. Subprime loan is only a branch of the American financial tree, and its fracture was not handled in time, which led to the almost complete collapse of the whole tree, which led to a global financial disaster.
Systemic financial crises are those that affect the entire financial system and even the entire economic system, such as the American financial crisis that triggered the Great Depression in the 1960s, the Japanese financial crisis that caused Japan's economic malaise in the 1960s, and the Asian financial crisis that hit Southeast Asia in the second half of the 1960s. Learn more about yourself in the Dream Garden Learning Exchange Center "2 12+360+2007".